Dixon City Comptroller Arrested for “Misappropriating” More than $30 Million since 2006

A press release from the U.S. Attorney’s Office:


ROCKFORD — The Comptroller for the City of Dixon, Ill., was arrested today by FBI agents on a federal charge for allegedly defrauding the City of Dixon of more than $3.2 million in public funds since just last fall.

In addition, a federal criminal complaint alleges that the defendant, Rita A. Crundwell, 58, of Dixon, has misappropriated more than $30 million in city funds since 2006 to finance her own lavish lifestyle, including operating a horse farm.

Crundwell handles all finances for the city and has held the appointed position of Dixon comptroller since the early 1980s.

She is paid an annual salary of $80,000, according to the complaint charging her with one count of wire fraud that was filed last Friday and unsealed today following her arrest.

Location of Dixon, Illinois

Also today, agents executed search and seizure warrants at various locations including, Crundwell’s home, office, and farms in Dixon and Beloit, Wis., and seized the contents of two bank accounts she controlled.

Among other items seized were

  • seven trucks and trailers,
  • three pickup trucks,
  • a $2.1 million motor home, and
  • a Ford Thunderbird convertible,

all of which were allegedly purchased with illegal proceeds.

Crundwell is scheduled to appear at 3 p.m. today before U.S. Magistrate Judge P. Michael Mahoney in U.S. District Court in Rockford, where the issue of bond will be addressed.

Dixon has a population of approximately 15,733 and is located in Lee County, about 42 miles southwest of Rockford.

The arrest was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation.

Dixon Mayor James Burke reported Crundwell to law enforcement authorities last fall after a city employee assumed Crundwell’s duties during Crundwell’s extended unpaid vacation.

After reviewing bank statements for September 2011 through March 2012, the FBI expanded the investigation and began reviewing the city’s finances dating back to 2006. The investigation is continuing, officials said.

According to the complaint, Crundwell receives four weeks of paid vacation annually and she took an additional 12 weeks of unpaid vacation in 2011.

In October last year, while Crundwell was away from work, a Dixon employee who served as her replacement requested all of the city’s bank statements.

After reviewing them, the employee brought the records of a particular account to Mayor Burke’s attention.

The September 2011 statement for that account showed three deposits totaling $785,000, as well as 84 checks drawn totaling $360,493, and 40 withdrawals totaling $266,605.

Mayor Burke was unaware that this account existed, the complaint states, adding that he then went to law enforcement since none of the withdrawals appeared to be related to any legitimate business of the City of Dixon.

Although the bank records show that the primary account holder is the City of Dixon, a joint account holder is listed as RSCDA, and the checks written on this account list the account holder as “R.S.C.D.A., C/O Rita Crundwell.”

The City of Dixon maintains numerous bank accounts, including a Capital Development Fund.

Between September 2011 and February 2012, approximately $2,783,912 in various tax funds were electronically deposited into one of the City’s accounts.

Crundwell allegedly caused these funds to be moved around to other bank accounts held by the city, and eventually transferred most of these monies into the Capital Development Fund account.

Between September 2011 and March 2012, in her capacity as comptroller, Crundwell wrote 19 checks totaling $3,558,000 on the Capital Development Fund account payable to “Treasurer,” and deposited these checks into the account listing RSCDA as the joint account holder.

She then allegedly took $3,311,860 from the RSCDA account by checks and online withdrawals, using only $74,274 for the city’s operations.

Crundwell allegedly used the remainder of those funds, more than $3.2 million, for her own personal and business expenses, including approximately

  • $450,000 relating to her horse farming operations,
  • $600,000 in online credit card payments, and
  • $67,000 to purchase a 2012 Chevy Silverado pickup truck

After discovering that Crundwell allegedly had recently transferred $3,558,000 in city funds to the RSCDA account, the FBI obtained additional bank records showing that between July 2006 and March 2012, Crundwell allegedly deposited a total of $30,236,503 in city funds into the RSCDA account, and paid out more than $30 million for her own personal and business expenses.

The complaint alleges that she used fraudulently obtained funds to make additional purchases, including

  • a 2009 Liberty Coach Motor Home for $2,108,000,
  • a 2009 Kenworth T800 Tractor Truck for $146,787,
  • a 2009 Freightliner Truck for $140,000,
  • a 2009 Chevrolet Silverado pickup truck for $56,646, and
  • a 2009 Featherlite Horse Trailer for $258,698

Between January of 2007 and March of 2012, Crundwell incurred charges of more than $2.5 million on her personal American Express credit card account, including more than $339,000 on jewelry alone, and allegedly used Dixon funds to pay the entire amount of charges.

Wire fraud carries a maximum penalty of 20 years in prison, and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

The public is reminded that a criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to an indictment by a federal grand jury and a fair trial at which the government has the burden of proving her guilt beyond a reasonable doubt.

= = = = =

Does anyone but I wonder where the outside auditors were since 2006?


Dixon City Comptroller Arrested for “Misappropriating” More than $30 Million since 2006 — 17 Comments

  1. Excellent question about the auditors Cal.

    I’m wondering why people who know her weren’t curious where all this came from

    And again, the question, when someone has it good, why isn’t it never enough?

    Adrenaline rush?

  2. You would be amazed at how public bodies (school districts, villages, counties, states, etc.) legally transfer money from one fund or account to another.

    And even more amazed by what auditors don’t look for when conducting routine audits.

  3. I show horses at some of the same shows as Rita, all I can say is wow.

    Reading through all the pleasure horse forums tonight and everyone has heard a different story about where the money came from.

    I heard it was family money, cell phone towers in Asia, campbells soup, all kinds of stuff.

    This is so incredibly shocking.

    I cant tell you how many world championship titles she has won (we now know unfairly) with the money of honest tax payers.

    It makes me sick

  4. If you go to the city of Duxon’s website, last year’s audit is there for the public to see.

  5. All the reason to have the books Linda Moore is keeping in Grafton Township audited.

  6. Is Rita Crondwell a democrat or a republican?

    Although, I’m sure that her political affiliation holds little importance to the overall big picture.

    If she stole thirty million from hardworking taxpayers, she’s a thief, and that’s important.

  7. Not that it should matter, especially since this is an appointed position by Rita Crundwell is a Republican.

    According to RNC records she donated $3250 in 2010.

  8. Yep and with her RNC donation I dare say that Rita CruMBwell probably condemned crack heads, petty thieves and people of what she would call of POOR MORAL COMPASS.

    I p’s me off that the town had to shut down its pool because of budget cuts.

    I wonder how many people she effected? and a $4500 bond???? Seriously??

  9. No matter how you cut it she is a brilliant and classy woman!

    I think the blame should fall on all the morons in Dixon!

    Rita is my idol and I would be so happy if she got off with probation and they gave all of HER stuff back!

    I am so sick of you crybabies!

    She earned the 53 million….the hard way!

    Try not to be jealous!

    She is an incredibly smart white collar thief!

    Plus a superb horse-woman!

  10. Down in Dixon,

    Please provide actual documentation of the political contribution to the RNC from Crundwell.

    Otherwise I’ll consider your lies typical of the political machine that infects our nation by your party.

  11. James: She was a 20 time republiKlan voter, check the RNC records yourself, perhaps they went the way of the bush AWOL/ANG records by now.

    Speaking of party Lies, How about them WMD’s?

    Restoring integrity into the white house, & promising to find & kill Bin Ladin, while allowing him & his Terrorists to escape through Torra Borra? And blaming Sadam for 9/11?

    Please provide evidence that none of this happened during your parties Lies!

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